Page 39 - 21 Cotton SA February 2020

/ PRODUCTS AND LIFESTYLE

hopefully result in increased production and • Extend the Competitiveness Improvement Pro-
competitiveness. Manufacturers promised R6,8 gramme (CIP) and the Production Incentive (PI)
billion in investment over the next five years. These in an appropriate format for three years, to
undertakings by some of the biggest players in increase investment and drive competitiveness
the clothing retail sector will boost the acquisition and productivity. The objective is to develop
of locally produced goods from its present level of future supply-side incentives.
44% to 65% by 2030. • Align production capacity to sales cycles.
The plan was developed through a process of • Transform the value chain. The target is to
consultation with all stakeholders and is based accelerate BBBEE and economic inclusion
on extensive research. Its vision for 2030 is “a through the R-CTFL value chain, focusing on
competitive, sustainable and dynamic R-CTFL black investment growth, increasing small-,
value chain that provides its customers with medium- and micro-enterprise (SMME) partici-
compelling products, encouraging increased pation and worker empowerment.
employment opportunities and advancing inclu-
sion and transformation”. The success of such an initiative is only possible if
The process culminated in the following seven all involved stakeholders commit to and actually
core commitments: implement the actions. This will require the
• Grow the local market for local CTFL products. following:
The agreed target is to grow total retail sales to • Structural changes based on growing the
R250 billion by 2030. domestic market
• Increase local CTFL procurement. Retailers • Increasing purchases from local sup pliers
have made a commitment to grow local share • Accessing and growing export markets
of sales to 65%. • Enhancing competitiveness
• Stem the flow of illegal imports to eliminate • Driving transformation
unfair competition against local retailers and • Increasing skills and technology
manufacturers.
• Employ strategic and effective tariff and rebate This is only the start of reviving the industry because
measures to provide fair protection for the there are other areas that need further work. These
domestic CTFL value chain, to substantially are being addressed by joint task teams that have
reduce illegal and under-invoiced imports. been set up to stimulate the textile pipeline.

Figure 1: Diagram showing the effect of the R-CTFL investment in the textile value chain.

Volume 22 No 1 February 2020 | 39